How Cannabis Dispensary Sales Will Be Conducted in Canada

Canada is just a few short months away from becoming the largest nation in the world to legalize the sale and use of recreational marijuana. Not only does this represent a monumental step forward for advocates of legalized cannabis, it also means massive opportunity for marijuana-minded entrepreneurs: early forecasts are estimating annual retail sales of recreational cannabis to reach between $2.3 and $4.5 billion by 2021.

These figures are promising; however, it’s important to keep in mind that regulations will vary throughout the country. And while there are still more questions than answers, we do know a few things about how cannabis dispensary sales will be conducted. Here's a breakdown by provinces.

Alberta will allow private operators to run brick-and-mortar cannabis retail storefronts; online cannabis sales will be managed by the government

British Columbia is expected to authorize retail cannabis sales by private and public operators, though details are not yet available

In Manitoba, retail cannabis sales will be conducted by private operators licensed by the Liquor and Gaming Authority, which will be renamed the Liquor, Gaming and Cannabis Authority

Newfoundland will authorize private operators to establish cannabis retail stores, though the government may run brick-and-mortar and/or online shops in areas without private establishments

In Saskatchewan, the Liquor and Gaming Authority will oversee the regulating and permitting of private cannabis retailers

Canadian Cannabis Consumer Insights

Canadian cannabis consumer research conducted by Deloitte indicates that roughly 22 percent of Canadian adults consume marijuana recreationally on an occasional basis and that 17 percent are willing to try it once legal. This puts the potential recreational cannabis market at around 40 percent of Canada’s entire adult population.

Current recreational marijuana consumption is nearly identical between adult males and females. Looking at generational demographics, 34 percent of millennials currently consume recreational marijuana, while 24 percent of Gen-Xers and 14 percent of baby boomers consume recreationally at least on occasion.

Stay Abreast of Canada’s Cannabis Progress

At Cova, we providedispensary point-of-sale softwarespecifically for cannabis retailers. Our POS system is used in hundreds of dispensaries throughout the U.S., and as a Canadian company based in Vancouver, we can’t wait to help our fellow Canadians in this exciting new industry.

One of the unique challenges facing cannabis retailers is track-and-trace reporting, which will be required by Canada’s federal government. Cova’s top priority is to integrate with each province’s traceability system so that retailers can ensure they remain compliant without having to manually report track-and-trace information every day.

To stay up-to-date on Canada’s cannabis regulations and the traceability requirements of provinces and territories, stay tuned to our Canada dispensary laws page, which will be updated frequently as new information becomes available.

And, if you’re ready to learn how Cova’s dispensary software can help keep your operation compliant, book a demo today! We’d love to show you how easy Cova’s POS makes compliance reporting.

Written byGary Cohen
Gary leads Cova’s charge into the legal cannabis space by guiding the vision, strategic development, ‘go to market’ plans and culture. A Denver native, he recently moved back to establish Cova’s HQ there. While he joined Cova only a year ago, he was a successful business partner to Cova’s parent company since 2011.
Before joining Cova, Gary was a principal in over a dozen tech start-ups in the mobile communications industry ranging from small VC funded companies to Fortune 100 firms, including Onavo, which was later acquired by Facebook. In those companies he led Sales, Marketing, Business Analytics and Market Expansions. He has also held a multitude of leadership roles with Verizon and AT&T for the first 15 years of the wireless industry.
Gary holds a Degree in Finance with a Masters in Marketing from the University of Colorado. In his spare time Gary enjoys skiing, mountain biking, outdoor sports, travel and comfort food.